Starting a business is not easy. It is often an overwhelming process that requires you to learn as you go. Before you get started, you should always have a certain number of things organized. This will go a long way in easing burdens and removing roadblocks. Several legal issues shouldbe addressed as soon as possible.
Starting a business is not easy. It is often an overwhelming process that requires you to learn as you go. Before you get started, you should always have a certain number of things organized. This will go a long way in easing burdens and removing roadblocks.
Several legal issues shouldbe addressed as soon as possible. Avoiding legal matters regarding your business could turn into a huge problem in the long run. In this post, we will offer ten legal tips that every business start-up should heed. This will help your business avoid the pitfalls that could derail it.
1. Choose Your Business Structure – This is an important step that could have some future legal ramifications. It is advisable that you immediately register your company as a Limited Liability Company (LLC) or Corporation. An LLC or corporation provides your startup with more of a legal cushion to protect your assets from creditors.
2. Have Written Contracts – Contracts are essential to the success of your business. All start-ups should have contracts for employees and for every party for which they engage in business. Huge problems can arise if your business doesn’t have contracts. This is the only way to ensure that you get paid by your clients. Absent a contract; you likely will not be in the position to pursue them legally.
3. Insurance Protection – You will need insurance in case you get sued and to protect your employees. And depending on the state, it may be the law.
4. Keeping Your Taxes in Order – You will need to hire a tax attorney for advice. It is essential that you keep your taxes in order. A tax attorney will help you understand your tax obligations.
5. Retaining Legal Documents – Legal documents will protect your business, employees, and others you do business with. You need to make sure you have all the necessary confidentiality agreements, partnership agreements, and more in place should you need them.
6. Intellectual Property Protection – Without the proper patents and trademarks, you could have your intellectual property ripped off. Make sure everything is properly registered with the patent office.
7. Consider Your Legal Advice – When you decide on a start-up, get the proper legal advice. Your business will depend on it. Shop around. Bad legal advice could cripple or end your business for good.
8. Have A Buy-Sell Agreement in Place – This is very important if you have co-founders or joint partnerships. A buy-sell agreement clarifies specifics regarding the business should partners part ways.
9. Use Legal Disclaimers – This will protect you against people lawsuits from people who make unreasonable claims. If you make sure, the customer has a good understanding of their responsibility and yours regarding the product or service; you will be fine. For instance, a birth injury law firm would not make any guarantees to a client that guarantees the outcome of a case.
10. Make Sure Your Business Is Legally Operating – You should make sure your business is in line with all the state’s laws. Make sure you have the proper licensing and have satisfied other state requirements once your business opens. This could keep you from being levied with fines or getting shut down altogether.